PHNOM PENH, Mar 11, 2011 (Xinhua via COMTEX) -- Cambodia decided to use its riel as settlement currency in the Cambodian Securities Exchange ( CSX), which is scheduled to be launched by July, a statement issued by the Securities and Exchange Commission of Cambodia (SECC) said Friday.
"The issuing securities shall be inscribed as riel and the quotation on securities in the trading system of CSX shall be conducted in riel" it said.
"The clearing facility in the primary market and the secondary market shall be used in riel currency, but the buyers and sellers of securities are also allowed to clear in U.S. dollar." "The clearing facility in U.S. dollar will be allowed to use in the CSX during the first three years since the date of the establishment of the CSX," according to the statement.
Ming Bankosal, director general of SECC, said Friday that the move aims to expand the usage of local currency, and is in line with the government policy to urge more circulation of local currency.
"However, we also recognized that the U.S. dollars are widely used in Cambodia's securities market, so we allow buyers and sellers of the securities to clear in U.S. dollars for the first three years," said Bankosal.
Cambodian Securities Exchange is set to start trading by July this year 'at any cost' after twice delays.
Three state-owned enterprises have been preparing IPO (Initial Public Offerings) for listing as soon as CSX launches. They are Sihanoukville Autonomous Port, Telecom Cambodia, and Phnom Penh Water Supply Authority.
Economists estimated that currently about 90 percent of business transactions in Cambodia have been made in U.S. dollars and the country circulates just about 500 million U.S. dollars worth of riel.
"The issuing securities shall be inscribed as riel and the quotation on securities in the trading system of CSX shall be conducted in riel" it said.
"The clearing facility in the primary market and the secondary market shall be used in riel currency, but the buyers and sellers of securities are also allowed to clear in U.S. dollar." "The clearing facility in U.S. dollar will be allowed to use in the CSX during the first three years since the date of the establishment of the CSX," according to the statement.
Ming Bankosal, director general of SECC, said Friday that the move aims to expand the usage of local currency, and is in line with the government policy to urge more circulation of local currency.
"However, we also recognized that the U.S. dollars are widely used in Cambodia's securities market, so we allow buyers and sellers of the securities to clear in U.S. dollars for the first three years," said Bankosal.
Cambodian Securities Exchange is set to start trading by July this year 'at any cost' after twice delays.
Three state-owned enterprises have been preparing IPO (Initial Public Offerings) for listing as soon as CSX launches. They are Sihanoukville Autonomous Port, Telecom Cambodia, and Phnom Penh Water Supply Authority.
Economists estimated that currently about 90 percent of business transactions in Cambodia have been made in U.S. dollars and the country circulates just about 500 million U.S. dollars worth of riel.
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